Cladding and EWS1: Can You Still Get a Mortgage?

The cladding crisis that followed the Grenfell Tower tragedy in 2017 has had a profound impact on the UK flat market. Thousands of leaseholders have found themselves unable to sell or remortgage because of building safety concerns. The situation has improved significantly since the worst days of 2020-2022, but cladding and fire safety remain live issues for many buildings.

Understanding the EWS1 Form

The External Wall System Fire Review (EWS1) form was introduced in 2019 as a way for buildings to demonstrate that their external wall systems (cladding) are safe. It is completed by a qualified fire engineer who assesses the building's external walls.

EWS1 Ratings

The form produces one of four ratings:

A1: No combustible materials in the external wall. No further action required. This is the best outcome.

A2: Combustible materials present but in a quantity or arrangement that does not pose a fire risk. No further action required.

A3: Combustible materials present that need further assessment but are unlikely to require major works.

B1: Combustible materials present that pose a fire risk. Remediation work is needed. This is the most problematic rating for mortgage purposes.

B2: An adequate assessment could not be completed. Further investigation needed.

Which Buildings Need an EWS1?

The requirements have evolved significantly since the form was introduced:

Buildings Under 11 Metres (Up to 4 Storeys)

Most lenders no longer require an EWS1 form for buildings under 11 metres. Following government and industry guidance, these lower-rise buildings are considered low risk for external wall fire spread.

Buildings 11-18 Metres (5-6 Storeys)

The position varies by lender. Some accept these buildings without an EWS1 if there is no visible cladding. Others still require the form. The trend is towards relaxing requirements for this height band, but check with your specific lender.

Buildings Over 18 Metres (7+ Storeys)

Most lenders still require an EWS1 form (or equivalent fire safety assessment) for taller buildings. A satisfactory rating (A1, A2, or A3) is needed for most lenders to proceed with a mortgage.

The Current Landscape

Government Remediation Programmes

The UK Government has established several programmes to fund the removal of unsafe cladding:

• Building Safety Fund: Provides grants for the remediation of buildings 11-18 metres with unsafe cladding
• ACM Cladding Remediation Fund: Specifically for buildings with the same type of cladding as Grenfell Tower (aluminium composite material)
• Developer Pledges: Over 50 developers have signed pledges to fund remediation of buildings they developed

The Building Safety Act 2022

This landmark legislation:

• Established the Building Safety Regulator
• Created a new regime for higher-risk buildings (over 18 metres or 7+ storeys)
• Extended the limitation period for building safety claims
• Required developers to contribute to remediation costs
• Introduced the Responsible Actors Scheme (developers who do not sign up face restrictions)

Leaseholder Protections

The Building Safety Act includes protections for qualifying leaseholders:

• Leaseholders in buildings over 11 metres are generally not required to pay for the remediation of historical building safety defects
• Service charge caps apply for non-cladding defects
• Building owners and developers bear the primary responsibility

Getting a Mortgage in an Affected Building

If the Building Has a Clear EWS1 (A1, A2, or A3)

Most mainstream lenders will proceed normally. The building has been assessed and does not require remediation. Keep a copy of the EWS1 form for your records and mortgage application.

If the Building Has a B1 Rating (Remediation Required)

Options are more limited but not zero:

• Some specialist lenders may consider lending if remediation is funded and has a clear timeline
• Cash buyers are not affected by mortgage requirements
• Some lenders may lend once a remediation contract has been signed, even before work is complete

If the Building Has No EWS1 Form

For buildings over 18 metres without an EWS1, most lenders will not proceed. Getting an EWS1 assessment requires the building's freeholder or managing agent to commission a fire engineer. Individual leaseholders usually cannot commission this themselves.

If you are stuck waiting for an EWS1, practical steps include:

• Pressuring the managing agent or freeholder to commission the assessment
• Contacting your MP for support
• Checking whether the building qualifies for government-funded assessment programmes
• Exploring specialist lenders who may accept alternative fire safety evidence

Impact on Property Values

The cladding crisis has had a measurable impact on property values in affected buildings:

• Buildings with clear EWS1: Minimal long-term impact; values have largely recovered
• Buildings in remediation: Temporary depression of 10-20% during the works period
• Buildings with unresolved B1 ratings: Significant depression of 20-40%+ due to limited buyer pool

As remediation progresses across the country, values in affected buildings are expected to recover. But timing is uncertain.

What Lenders Want to See

When you apply for a mortgage on a flat in a multi-storey building, lenders will want:

1. An EWS1 form (for buildings where required) with a satisfactory rating
2. Evidence that the building is not subject to remediation requirements — or if it is, that funding and a plan are in place
3. Confirmation of buildings insurance — some insurers have been reluctant to insure buildings with cladding issues
4. A satisfactory valuation — the surveyor will assess the building's fire safety as part of the valuation

Practical Advice

1. Research the building thoroughly before making an offer
2. Ask for the EWS1 form early in the process — do not wait until your mortgage application is underway
3. Check the building's safety case if it is a higher-risk building registered with the Building Safety Regulator
4. Factor in service charges — even with leaseholder protections, there may be costs associated with building safety improvements
5. Consider future saleability — will the cladding situation be fully resolved when you want to sell?
6. Get specialist mortgage advice — a broker can identify which lenders are currently lending on buildings with your specific circumstances

For Current Leaseholders

If you already own a flat in an affected building and are struggling to sell or remortgage:

• Check your eligibility for leaseholder protections under the Building Safety Act
• Contact the managing agent about the remediation timeline
• Explore specialist lenders for remortgaging
• Consider whether your existing lender will offer a product transfer (switching to a new rate without a full application, which may not require an EWS1)
• Seek legal advice about potential claims against developers or building owners

This is educational content, not financial advice. Your situation is unique — speak to a qualified mortgage broker before making any decisions.